Silver is an AI trade

Datacenters and big tech firms have ordered more chips from nvidia than the grid can power. That means that in order to use the chips rhat are being delivered soon, datacenters need more power. To get there they will need nuclear, solar, and other power generation methods.

Solar power demand is expected to grow substantially. I believe the figure bandied about is around 900%. Each solar panel uses nearly 1 oz of silver in it’s production. Some say that just solar panel production could consume all of the world’s mined silver annually.

Silver is important to manufacturing a lot of electronic components including batteries. In fact. Samsung wants to use a silver oxide battery for EVs that will require 2.2lbs of silver per vehicle.

There is already a silver deficit, meaning that current supply has not met demand for the last 3 years and 2024 is slated to be the 4th year running. Refineries have been able to make up the difference by buying metal on the secondary market.

Silver isn’t just used for industrial purposes, it’s used to make jewelry, coins, and art materials. I am told that people throughout asia adorn themselves in silver and save it as money, and it is said that those in the far East often view silver as being superior to gold. In China, the silver shortage has resulted in a substantial premium being charged for silver bullion.

Gold has historically run at a 15:1 ratio to silver, it is currently trading at 83:1, if silver were to trade at 15:1 today, it’s true value would be $166.00 per oz. Currently it trades much lower at around $30. This would be an increase of about 450%.

The question on the mind of most silver bugs has been, when will we see the return to the historical ratio? While I can’t predict for sure, I believe that it will happen sooner rather than later.

It is true that silver isn’t a precious metal like gold, platinum, or palladium, but it is affordable and as beautiful if not more so than any of the other white metals. Platinum, once fetched a higher price than gold, but it seems that these days people prefer silver to platinum as they look very simile and platinum is 30x more expensive.

If you want to invest in silver bullion most folks shop at apmex, jmbullion, or online with walmart. I have found silver kugerrands and walking liberties at a great price at all 3 sites.

With silver you can also buy .925 silver jewelry and online many sellers offer .999 silver jewelry. You’ll often pay 2x – 5x the metal value when buying silver jewelry but you can wear it for life, so in that case, the cost to have it made may not be that much of a consideration.

For serious stacking buying bars of metal from reputable shops is usually the best bet for the lowest price but personally I do prefer the beautiful designs on the coinage.

While gold is nice to have as well, it is just far too expensive compared to silver, and silver has many long term factors that I believe will drive the price of silver well above where it has historically traded. It’s also a nice way to diversify from stocks, crypto, and real estate.